Kumba Iron Ore Limited production and sales report for the quarter ended 31 March 2018
24 April, 2018
Kumba Iron Ore Limited ("Kumba") announces its production and sales report for the quarter ended 31 March 2018. Throughout this report, production and sales volumes referred to are 100% of Sishen Iron Ore Company Proprietary Limited ("SIOC"), and attributable to shareholders of Kumba as well as the non-controlling interests in SIOC.
Overview:
- Safety performance continued to improve on all fronts with Kumba maintaining its fatality free track record.
- Total production increased by 4% compared to Q1 2017 driven by production at Kolomela increasing 26% to 3.5Mt due to increased plant throughput.
- Waste stripping increased by 24% at Sishen and by 32% at Kolomela relative to Q1 2017, demonstrating continued improvement in efficiency.
- Export sales decreased marginally to 9.9Mt in comparison to Q1 2017, while domestic sales increased by 6%.
| Production summary | |||||
|---|---|---|---|---|---|
| '000 tonnes | Quarter ended | ||||
| Q1 2018 | Q1 2017 | % change vs Q1 2017 |
Quarter ended Q4 2017 | % change vs Q4 2017 |
|
| Total | 10,855 | 10,473 | 4 | 11,643 | (7) |
| - Sishen mine | 7,325 | 7,679 | (5) | 7,783 | (6) |
| DMS plant | 4,363 | 4,795 | (9) | 4,786 | (9) |
| Jig plant | 2,962 | 2,884 | 3 | 2,997 | (1) |
| - Kolomela mine | 3,530 | 2,794 | 26 | 3,860 | (9) |
| Sales summary | |||||
|---|---|---|---|---|---|
| '000 tonnes | Quarter ended | ||||
| Q1 2018 | Q1 2017 | % change vs Q1 2017 |
Quarter ended Q4 2017 | % change vs Q4 2017 |
|
| Total | 10,831 | 10,886 | (1) | 12,231 | (11) |
| - Export sales | 9,946 | 10,053 | (1) | 11,355 | (12) |
| - Domestic sales | 885 | 833 | 6 | 876 | 1 |
Sishen production decreased by 5% to 7.3Mt, and by 6% relative to Q4 2017. This was primarily driven by lower DMS plant production due to short-term mining feedstock constraints which were partially offset by higher yields from both the DMS and JIG plants. Waste stripping remained in line with Q4 2017 at 42.2Mt and increased by 24% compared to Q1 2017 as a result of the continued improvement in efficiencies. Production and waste stripping rates are expected to be maintained at levels required to meet the full year guidance of 30-31Mt and 170-180Mt, respectively.
Kolomela production increased by 26% to 3.5Mt, driven by higher plant throughput and the full ramp-up of the DMS modular plant. In comparison to Q4 2017, production decreased by 9% as a result of wet weather conditions which reduced primary equipment tempos. Waste stripping increased by 32% to 13.4Mt due to improved efficiencies. The full year production guidance for Kolomela remains at 14Mt, with waste stripping at 55-57Mt.
Export sales decreased by 1% to 9.9Mt below the Q1 2017 level. However, relative to Q4 2017, this was a 12% decrease following derailments which impacted export sales by 1.1Mt. Kumba is working closely with Transnet to mitigate derailments and currently expects to meet full year guidance with total sales of 44–45Mt. Total finished product stock is 4.6Mt, compared to 4.3Mt as at 31 December 2017.